Atmel Corporation has completed the sale and transfer of its fab in Heilbronn, Germany to Tejas Silicon Holdings (UK) Limited, reducing its fab count to two at the end of 2008. Tejas will fabricate various ICs for Atmel at the facility over the next three years under a new foundry supply contract.

"Atmel continues to increase its focus on and investment in its high-growth, high margin proprietary product lines,” noted Steven Laub, Atmel's President and Chief Executive Officer. “We have already divested or shut down 14 non-core product lines, while consolidating or streamlining others. In addition, we have divested or closed three wafer fabrication facilities as we implement our fab-light strategy.

Atmel has previously sold its UK fab in North Tynside to Tejas. Approximately 260 workers at the fab in Germany will be employed by Tejas.